Elder Pharma in advanced talks with lenders for restructuring

MUMBAI: Facing a severe financial crunch, Elder Pharma today said it is in the process of restructuring as a whole and is in an advanced stage of discussions with prospective lenders.

The company is in the process of restructuring as a whole and hence is under advanced negotiation/discussions with prospective lenders who would be interested in this exercise for the company's revival and as such no final formal agreement has been signed off from our end, Elder Pharma stated in its communique to BSE today.

The company's share rallied by 20 per cent to Rs 100.80 on the BSE today following reports that the healthcare company may sell assets to reduce debt.

Elder has six manufacturing (API and formulations) plants in India (Patalganga (active pharmaceutical ingredients) and Nerul plants in Maharashtra, Paonta Sahib and Langha Road plants in Himachal Pradesh and Selaqui in Uttaranchal) and one in Nepal.

Earlier this month, the company had stated that it is presently facing a severe financial crunch. In view thereof, many of its senior employees, including junior and subordinate staff, have resigned from the company.

This lead to severe shortage of employees to handle the work of accounts and audit for the same and therefore audit has not completed within time.

The company also said that it is unable to hold the board meeting on or before August 29.

Elder has been following financial year ending June 30.

Accordingly, Clause 41 of Listing Agreement, the company has to submit quarterly and yearly audited financial results within 60 days from the end of quarter.

The company is in process to complete the audit as early as possible and will submit the audited financial results in due course of time, the statement said.

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